Loading...
HomeMy WebLinkAboutMay 22, 2017ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF MAY 22, 2017 The meeting was called to order at 6:30 pm by President Szurek Members Present: Williams, Buesgens, Murzyn, Herringer, Schmitt, Novitsky, and Szurek Staff Present: Walt Fehst, Joseph Hogeboom, Keith Dahl, and Shelley Hanson. PLEDGE OF ALLEGIANCE- RECITED CONSENT ITEMS Approve the Minutes from May 1, 2017 Motion by Williams, seconded by Schmitt, to approve the Minutes of May 1, 2017, as presented. All ayes. MOTION PASSED. BUSINESS ITEM 1. 47th AND GRAND AVENUE DEVELOPMENT UPDATE-DOMINIUM Owen Metz from Dominium gave a brief power point presentation regarding the proposed construction of two apartment buildings to finish the development of the Grandview site. He said that Dominium is interested in this site as it has a high traffic count and is nearby businesses, restaurants, and shopping. He explained that they held an informational meeting for neighbors last week and that the primary concerns of the residents were parking and how their property values may be affected. Metz reviewed the scope of the plan with members. He said the buildings would be comprised of approximately 81 one BR units, 92 two BR units, and 42 three BR units. He reviewed the amenities of the common areas and of the apartments themselves. These numbers could change based on feedback from the meeting held last week with neighboring residents. Metz explained that the project is planned as a Section 42 program that is considered moderate affordable housing. Incomes for residents would be restricted to 60% below the average medium income which is currently at $37,980 for one person, $43,440 for two people, and $48,840 for three persons. Metz told members they are seeking tax exempt bonds (with no obligation to the City), and TIF funding to help finance the project. He said they would also apply for TOD (transit oriented development) grant funds through the Met Council for the project. Dominium would like the TIF funding for a period of 10-20 years. Metz then went on to tell members EDA Minutes Page 2 May 22, 2017 that they would also be applying for zoning waivers for the MXU District requirements in regards to the parking ratio and the allowed density. He said they want to reduce the required parking from 2 spaces per unit to 1.5, and changing the allowed density of 30 units per acre to 40-42 units per acre. Fehst asked what the case was for the density waiver and Metz said to make it more financially feasible for them. Buesgens told Metz the City would be applying for grant funds from MN DOT for lighting and other improvements along Central Avenue, but if it is not awarded, then those improvements would not happen for several years. She then asked if the buildings would include an energy saving solar system, and Metz told her it probably wouldn’t be part of the initial construction. Buesgens then asked what the maximum occupant load would be per unit. Metz replied that they abide by City restrictions on this, but it is usually set at two persons per BR in most communities. Murzyn stated that residents at the meeting had requested that the buildings be downsized. Metz said they may go down to 190 units, but can’t go much less and have it financially work for them. Murzyn also felt the parking should remain at 2 spaces per unit as most families have two working people with vehicles, even in the one BR units. Williams thinks Dominium should have another meeting with the residents in that area in order to gain more support for the project. He thinks more concessions could be made to gain that support since he felt that most of the residents in the area were against the proposed project. Hogeboom stated that the EDA is being asked to set a Public Hearing for July to consider establishing a TIF District. More information on this project will be brought before the Planning & Zoning Commission at a Public Hearing later in the summer if they decide to move ahead. He said Dominium is trying to get the financing for the project in order first by seeking approval in July for TIF funding and making application for the Tax Exempt Bonds in August. Dahl passed out a survey depicting the site and where the two building would be located. There was a discussion about what rights the HOA had regarding the proposal, and it was noted they are very limited. Murzyn said many of the residents and board members that were at the meeting thought that the original Development Agreement prohibited the construction of any rental apartment buildings. Dahl said that the City Attorneys have reviewed the Agreement and the amendment passed in 2010 and did not find language that specifically prohibits the development of rental buildings. He said the original plan proposed three condo buildings, but the Developer died after the construction of the first building, and then the real estate market crashed and the demand for condo type buildings was negatively affected. It was noted that the legislature recently passed a bill to help improve the condo market and there is a project being built in the south metro so it may indicate the market could be improving in this area. EDA Minutes Page 3 May 22, 2017 2. REQUEST PUBLIC HEARING FOR THE PROPOSED ESTABLISHMENT OF THE 47TH AND GRAND TIF DISTRICT – RESOLUTION 2017-11 As previously discussed, Dominium has requested public financial assistance for the redevelopment of the property located at the corner of 47th and Grand Avenue NE. Many specifics are still being discussed and reviewed between staff, Ehlers and Dominium to verify the true extent of assistance needed. Possible uses for which public financial assistance is being requested consist of land acquisition, public improvements, soil and environmental reports, and site improvements. In Columbia Heights, the Columbia Heights Economic Development Authority (EDA) is the authority authorized to exercise Tax Increment Financing (TIF) powers, however the EDA may not exercise any TIF powers without the prior approval of the City Council (Council) of the City of Columbia Heights (City). Previously, the EDA and the Council established a redevelopment project designated as the Downtown Central Business District Revitalization Plan. The revitalization plan has encouraged development and redevelopment within the City along Central Avenue; however, modifications must be added to encompass the potential development being proposed by Dominium. In order to establish a TIF District for Dominium, certain events must occur that are outlined on the attached Schedule of Events. As part of that process, the EDA must formally request that the Council call for a public hearing to consider modifications to the Downtown Central Business District Revitalization Plan and for the establishment of the 47th and Grand TIF District. Staff recommends adopting Resolution 2017-11, a resolution requesting City Council to call for a Public Hearing to consider a Modification to the Downtown Central Business District Revitalization Plan and for the Establishment of the 47th and Grand TIF District. Questions from members: There were no further questions from members. Motion by Buesgens, seconded by Schmitt, to waive the reading of Resolution 2017-11, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Buesgens, seconded by Schmitt, to adopt Resolution 2017-11, a resolution requesting City Council to call for a Public Hearing on July 10, 2017 at approximately 7:00 PM for the Modification to the Downtown Central Business District Revitalization Plan for the Downtown Central Business District Redevelopment Project and the Establishment of the 47th and Grand Tax Increment Financing District. All ayes. MOTION PASSED. EDA Minutes Page 4 May 22, 2017 SCHEDULE OF EVENTS COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND THE CITY OF COLUMBIA HEIGHTS ANOKA COUNTY, MINNESOTA MODIFICATION TO THE DOWNTOWN CBD REVITALIZATION PLAN FOR THE DOWNTOWN CENTRAL BUSINESS DISTRICT (CBD) REDEVELOPMENT PROJECT AND THE ESTABLISHMENT OF THE 47th AND GRAND TAX INCREMENT FINANCING DISTRICT (a housing district) (as of May 16, 2017) May 22, 2017 EDA Requests that the City Council calls for a public hearing on the Modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and the Establishment of the 47th and Grand Tax Increment Financing District. May 22, 2017 City Council calls for a public hearing on a Modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and the Establishment of the 47th and Grand Tax Increment Financing District. May 26, 2017 Project information (property identification numbers for proposed property to be purchased, project description, and maps) for drafting necessary documentation sent to Ehlers. N/A* Project information submitted to the County Board for review of county road impacts if necessary* (at least 45 days prior to public hearing). *The County Board, by law, has 45 days to review the TIF Plan to determine if any county roads will be impacted by the development. Because City staff believes that the proposed tax increment financing district will not require unplanned county road improvements, the TIF Plan was not forwarded to the County Board 45 days prior to the public hearing. Please be aware that the County Board could claim that tax increment should be used for county roads, even after the public hearing. May 31, 2017 Letter received by County Commissioner giving notice of potential housing tax increment financing district (at least 30 days prior to publication of public hearing notice.) [Ehlers will fax and mail on or before May 31, 2017.] EDA Minutes Page 5 May 22, 2017 June 9, 2017 Fiscal/economic implications received by School Board Clerk and County Auditor (at least 30 days prior to public hearing). [Ehlers will fax & mail on or before June 9, 2017] June 19, 2017 Ehlers conducts internal review of the Plans. SCHEDULE OF EVENTS – PAGE TWO COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND THE CITY OF COLUMBIA HEIGHTS ANOKA COUNTY, MINNESOTA MODIFICATION TO THE DOWNTOWN CBD REVITALIZATION PLAN FOR THE DOWNTOWN CENTRAL BUSINESS DISTRICT (CBD) REDEVELOPMENT PROJECT AND THE ESTABLISHMENT OF THE 47th AND GRAND TAX INCREMENT FINANCING DISTRICT (a housing district) June 30, 2017 Date of publication of hearing notice and map (at least 10 days but not more than 30 days prior to hearing). [Sun Focus publication deadline June 26, 2017 by 11:00 A.M. – Ehlers will submit notice & map on or before June 26, 2017.] July 3, 2017 EDA adopts a resolution approving a Modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and the Establishment of the 47th and Grand Tax Increment Financing District. EDA passes a resolution decertifying parcels from the K-Mart/Central Avenue Tax Increment Financing District for inclusion in the 47th and Grand Tax Increment Financing District. July 5, 2017 Planning Commission reviews the Plans to determine if they are in compliance with City's comprehensive plan and adopts a resolution approving the Plans. July 10, 2017 City Council holds a public hearing at 7:00 p.m. on the Modification to the Downtown CBD Revitalization Plan for the CBD Redevelopment Project and the Establishment of the 47th and Grand Tax Increment Financing District and passes resolution approving the Plans. [Ehlers will email Council packet information to the City on or before July 3, 2017.] City Council approves an Interfund Loan in connection with the 47th and Grand Tax Increment Financing District. Ehlers files the Plans with the MN Department of Revenue, Office of the State Auditor, and Anoka County. EDA Minutes Page 6 May 22, 2017 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY CITY OF COLUMBIA HEIGHTS ANOKA COUNTY, MINNESOTA RESOLUTION NO. 2017-11 RESOLUTION REQUESTING A PUBLIC HEARING ON THE MODIFICATION OF THE DOWNTOWN CBD REVITALIZATION PLAN FOR THE DOWNTOWN CBD REDEVELOPMENT PROJECT AND THE ESTABLISHMENT OF THE 47th AND GRAND TAX INCREMENT FINANCING DISTRICT (A HOUSING DISTRICT). BE IT RESOLVED, by the Board of Commissioners (the "Board") of the Columbia Heights Economic Development Authority, Minnesota (the "EDA") as follows: WHEREAS, the City Council (the "Council") of the City of Columbia Heights, Minnesota (the "City") and the Housing and Redevelopment Authority in and for the City previously established the Downtown CBD Redevelopment Project (the “Project”) pursuant to Minnesota Statutes, Sections 469.001 to 469.047 and predecessor statutes, in an effort to encourage the development and redevelopment of certain designated areas within the City, and the City transferred the authority and operation of the Project to the EDA by a resolution of the Council pursuant to Minnesota Statutes, Section 469.094, as amended; and WHEREAS, the EDA is proposing the modification of the Downtown CBD Revitalization Plan for the Project and the establishment of the 47th and Grand Tax Increment Financing District therein, pursuant to Minnesota Statutes, Sections 469.174 to 469.1794 and Sections 469.090 through 469.1082, inclusive, as amended; NOW, THEREFORE BE IT RESOLVED by the Board as follows: 1. The EDA hereby requests that the Council call for a public hearing on July 10, 2017 to consider the proposed modification of the Downtown CBD Revitalization Plan for the Project and the proposed adoption of a Tax Increment Financing Plan for the 47th and Grand Tax Increment Financing District (collectively, the "Plans") and cause notice of said public hearing to be given as required by law. 2. The EDA directs the Executive Director to transmit copies of the Plans to the Planning Commission of the City and requests the Planning Commission's written opinion indicating whether the proposed Plans are in accordance with the Comprehensive Plan of the City, prior to the date of the public hearing. 3. The Executive Director of the EDA is hereby directed to submit a copy of the Plans to the Council for its approval. 4. The EDA directs the Executive Director to transmit the Plans to the County and the School District in which the 47th and Grand Tax Increment Financing District is located not later than June 9, 2017. Staff and consultants are authorized and directed to take all steps necessary to prepare the Plans and related documents and to undertake other actions necessary to bring the Plans before the Council. Approved by the Board on May 22, 2017. _______________________________ President ATTEST: ______________________________ EDA Minutes Page 7 May 22, 2017 The meeting was adjourned at 7:05 pm. Respectfully submitted, Shelley Hanson Assistant Secretary